Factors Influencing Indian Currency Market:

Why Currency Futures ?

Trade on a regulated and efficient platformAllow for transparent
pricingEqualise the playing field for investorsAllow individuals
and smaller corporates to access favorable rates usually reserved for larger corporatesRepresents a relaxation of exchange controls for individuals and corporate entitiesLess administration for corporatesIndian currency exchange will
soon start trading in EURO, YEN & POUND also, and the option contracts too will
be launched soonerInflow of Foreign Funds

Quotation & Settlement In Currency Exchange:

NSE quotes all currency future prices in the same way as the underlying spot exchange
rateThis is represented as the number of rupees per foreign currency quoted
to four decimal places, e.g. INR 49.1175 to 1$Last working day for each
contract is two working days prior to the contract expiration dateContract Expiration Date for each contract is the last working day of the monthAll the contracts will be settled in INR

How to Trade/Close a Position:

If an investor has a view on which direction the currency is going to move, the
investor needs to contact their broker to transact on their behalfTo close
the contract, they enter into an equal but opposite transactionFor example,
if an investor had bought a currency future contract, the investor would close out
the trade by selling the contract

Profit & Loss/ Variation Margin-Example :

Profit Trades

Lose Trades

Buy Low-Sell High

Buy High-Sell Low

Sell High-Buy Low

Sell Low-Buy High

Profit /Loss is calculated at the end of day on closing price (fair value)Position holders of profitable trades receive Variation MarginPosition
holders of loss trades pay in Variation Margin

How to Roll Over a Position:

All investors who wish to hold their positions beyond the expiry date will be
required to roll their positions over into the next expiry dateInvestors
will need to close out their positions and subsequently enter into the next contract
expiry. This is usually done automatically on the investors behalf by the brokerExample - investors holding a June contract will need to roll their position into
the September contract. If an investor had bought a June contract, the investor
would have to sell the June contract and subsequently buy a September contractThe benefit to the investor is that the same exposure is maintained.The Exchange offers discounted trade fees for all positions that are rolled overWorld’s daily turnover is app. US $ 4.5 trillionIndia’s daily turnover
is app. US $25 bn or Rs. 1.5 Lk croreCurrency Future accounts for a meager
Rs 2000cr.

"No need to issue cheques by investors while subscribing to IPO. Just write
the bank account number and sign in the application form to authorise your
bank to make payment in case of allotment. No worries for refund as the
money remains in investor's account."

Attention Investors :"Prevent Unauthorized Transactions in your Trading / Demat account --> Update your Mobile numbers/email IDs with your Depository Participant/stock brokers. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL/NSDL on the same day and also receive information of your transactions directly from Exchange on your mobile/email at the end of the day ......................issued in the interest of investors."

"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."